Reference no: EM132464078

Section 1 There are four financial statements - balance sheet, income statement, statement of cash flows, and statement of changes in equity. Briefly describe the information conveyed by the balance sheet relative to that conveyed by the income statement.

Section 2 - End of Period Adjustments and Closings and Financial Statements

The unadjusted trial balance of ABC's Financial Consultant, contains the following account balances as at 30 June 2017:

ABC FINACIAL CONSULTAT Unadjusted Trial Balance, as at 30 June 2017

Account                             Debit                     Credit

Cash at Bank                  $5200

Accounts Receivable         9260

GST Receivable                 920

Office Supplies                1140

Land                            60000

Building                        152000

Accumulated Depreciation - Building                  64000

Office Equipment                 23400

Accumulated Depreciation - Office Equipment        6420

Accounts Payable                                           7960

Unearned Consulting Fees                                 1560

GST Payable                                                 2000

Mortgage Payable                                       88600

C. Delaney, Capital                                    71490

C. Delaney, Drawings            52780

Consulting Fees Revenue                             156860

Insurance Expense                  1660

Salaries Expense                    87940

Electricity Expense                   760

Interest Expense                    2090

Telecommunications Expense   1740

Total                                      $398 890           $398 890

The following additional account titles are included in the chart of accounts:

1. Prepaid Insurance
2. Telecommunications Expense Payable
3. Office Supplies Expense
4. Depreciation Expense - Buildings
5. Depreciation Expense - Office Equipment
6. Interest Payable
7. Salaries Payable

The following information is also available:

Point 1. A physical count of office supplies reveals that supplies totalling $420 are on hand at 30 June.

Point 2. The balance in the Unearned Consulting Fees account includes $1200 earned for services rendered in the last week of June.

Point 3. Estimated depreciation on the office equipment is $2140. Depreciation on the building is $8760.

Point 4. A 12-month insurance policy was purchased on 1 April for $780 plus GST.

Point 5. The June monthly mortgage payment of $900 has not been paid or recorded. In each payment, $220 is attributable to interest.

Point 6. The June telecommunications costs for $320 are unrecorded. No tax invoice has been received.

Point 7. Salaries of $980 were owing to employees at 30 June 2017.

Required:

Question 1. Prepare 6-column worksheet for the year ended 30 June 2017. Use the same format of the column worksheet provided.

Question 2. Prepare the income statement, balance sheet (Narrative Format) and statement of changes in equity